HARP Seminar: Why do firms care about Corporate Social Responsibility? The role of Corporate Governance, Shareholding Structure, and Executive Compensation.

Free to attend

Location: IRC LG01 Seminar Room, Henley Business School, Whiteknights.

Seminar start: 11:00

Abstract

This paper aims to explore the role of corporate governance and shareholding structure on corporate social responsibility. Using a large panel data of UK FTSE 350 firms, our results provide evidence that effective corporate governance has a positive impact on the firm's decisions toward corporate social responsibility. While institutional and managerial shareholdings are negatively associated with firms corporate social responsibility performance. We also provide empirical evidence of a substitution effect between corporate governance practices and shareholding structure on their roles on corporate social responsibility. Finally, our additional analyses provide empirical evidence that compensation structure, as a corporate governance tool, aligns management decisions toward corporate social responsibility activities. This result supports the UK Corporate Governance Codes principles for designing remuneration policies and practices to maintain strategy objectives and promote long-term sustainable success.

Biography

Basil is a Professor of Accounting and Finance. He joined Huddersfield Business School in 2017 from Birkbeck College, University of London where he was the chair of the Accounting and Finance subject group and the director of Accounting and finance postgraduate programmes. Prior to joining Birkbeck, Basil worked at Middlesex University in the Accounting and Finance Department as a Senior Lecturer in Finance.

Basil's background is corporate finance in the fields of capital structure, dividend policy, and cash holdings as well as corporate governance implications in corporate finance and accounting. Basil has also developed an interest in sector applications in finance.

Basil also has interests in curriculum development. At Birkbeck College, University of London, Basil developed and redesigned the MSc Investment Management and the MSc Accounting and Financial Management.

During his career, Basil has taught various finance modules at both undergraduate and postgraduate levels. He has a special interest in teaching Corporate Finance, International Finance, Financial Modelling and Contemporary Issues in Accounting and Finance, where he uses his research to inform his teaching.

Research Expertise and Interests

Basil’s research is in the areas of corporate finance, financial reporting, applications of corporate governance in financial management, and most recently in tourism financial management.